Here is a chart of how a loan progresses in Ann Arbor with the new Good Faith Estimates and new HUD Guidelines.
Courtesy of Tom Richardson of Liberty Title.
Ann Arbor Area or foreclosures throughout Washtenaw County.
Many sellers ask me should we sell now or wait until the market comes back? I answer by telling them two things.
According to recent data from First American CoreLogic on foreclosures for the Ann Arbor area, the rate of foreclosures among outstanding mortgage loans is 1.29 percent for the month of October, an increase of 0.59 percentage points compared to October of 2008 when the rate was 0.70 percent.
* Foreclosure activity in Ann Arbor is lower than the national foreclosure rate which was 3.02 percent for October 2009, representing a 1.73 percentage point difference.
However in Ann Arbor, the mortgage delinquency rate has increased. According to First American CoreLogic data for October 2009, 4.85 percent of mortgage loans were 90 days or more delinquent compared to 3.25 percent for the same period last year, representing an increase of 1.60 percentage points.
This is a current search as of today, December 10, 2009 of the homes that are bank or government owned in the Ann Arbor Area Board of Realtors MLS. There is a total of 97 single family homes; but 22 are under contract so 75 are available to purchase.
***Thanks to First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, the largest provider of real estate, property and ownership data and advanced analytics for information on foreclosures, delinquencies, median home prices, home price indices, home valuations, sales activity and mortgage loan originations, for the use of their data in this post.***
What should you do if you live in Washtenaw County and are in a lease with a landlord who goes into foreclosure?
In good faith you have signed a lease. One day you come home from work or classes and see a notice of foreclosure on the door.
First, don’t panic. According to Michigan law the mortgage company must post this on your door at least 15 days before advertising in the papers a notice of foreclosure.
After the 6 weeks of being posted publicly, the home must go to a sheriffs sale. Michigan is a redemption state, this means that the homeowner has 6 months from the date of the sheriffs sale to “redeem” the property. Basically this means the homeowner must pay all fees and back mortgage payments.
The lease you have is valid until the redemption period ends.
That is a tough call, as the landlord has not been paying the mortgage but using your money. Technically the landlord still owns the property. Your lease is with them. One suggestion on the Michigan Tenant Organization suggests is to keep the money as the landlord could still bring and eviction case for non-payment of rent.
Yes you are still entitled to getting your security deposit back.
In Ann Arbor, I have seen this several times. In good faith you signed a lease, paid the rent and come home to find a “notice of foreclosure” on your door.
If you are working with a Licensed Realtor, it is a good idea to have them prove they are current on the mortgage obligations at the time you sign a lease.
Many homeowners in the Ann Arbor Area have not been able to sell their homes, therefore, they choose to rent. Many times the rent is not enough to cover their mortgage payment and they get behind.
If they miss 3 months payments the mortgage company or bank will begin the process of foreclosure.
Your lease is valid until the 6 month redemption period ends.
If you need help in Washtenaw County contact Michigan Tenant Counseling Program at 734-761-8599
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You’ve probably heard my now but the tax credit for first time home buyers has been extended to people who are not first time home-buyers. You are now eligible if you are a move up buyer in Washtenaw County.
What does this mean for you?
Well if you own a home in Ann Arbor or anywhere USA and you purchase a new home anytime from November 6th until June 30th, 2010 you can take a tax credit of $6500.00 on your taxes.
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
HUD allows buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses. An FHA loan requires 3.5% down payment.
For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return.
To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
If you are moving and have loss of equity in your current home, this up to 10% tax credit can help off set some of your loss.
For more information go to the Federal Housing Tax Credit Facts and Questions.
Homes for sale in Ann Arbor Area MLS.
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Ann Arbor Area buyers Congress has extended the First Time Home Buyer Credit and Expanded who is available to Claim the Credit. Originally set to expire on November 30th, Congress has passed legislation to extend the credit until June 2010 and allow home owners that have purchased in the past to use it.
Ann Arbor and Saline Residents don’t forget to turn your clocks back one hour.
Enjoy that extra hour of sleep.
Have a safe and Happy Halloween. 
~Missy
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